United Kingdom: Consumer sentiment worsens in October
The GfK consumer confidence indicator fell from minus 9 points in September to minus 10 points in October. As a result, the index moved further into negative territory, where it has been since April 2016, highlighting that consumers are broadly pessimistic.
October’s decrease reflected consumers’ worsened views of their personal financial situation and the general economic situation over the next 12 months, and a reduced willingness to make major purchases. Consumers’ views of their personal financial situation and the general economic situation over the past 12 months were unchanged.
Going forward, recent signs of faster wage growth, if maintained, could support confidence. However, ongoing Brexit uncertainty and tighter financial conditions will likely weigh on sentiment.